Loaded baked potatoes are my absolute favorite steakhouse side dish. This potato bacon casserole is a deconstructed twist on the classic loaded baked potato recipe. It has all of the flavors you love like bacon, cheese and onions, cooked in a convenient, family-friendly casserole perfect for a holiday meal.
My secret ingredient
Bacon is the star of this cheesy bacon potato casserole, so why not kick up the flavor a notch in this baked potato casserole? I’ve added smoked paprika, garlic and green onion to infuse BIG smoky bacon flavor to the creamy sauce. This flavor combination doesn’t actually use bacon (it just tastes like it), so if you’re making this potato salad vegetarian, simply skip the bacon and the creamy sauce will deliver an amazing smoky flavor. You won’t miss a thing!
If you enjoy this flavor combination, you may want to try a vegan TLT (Tofu Lettuce Tomato). This is a great way to use those fresh garden Summer tomatoes.
What’s in this potato bacon casserole?
- Yukon gold potatoes – Russets and red potatoes will also work but Yukon gold is my favorite.Â
- Bacon – You can substitute the bacon for a pound of thick cut ham.Â
- Mayo – What’s a casserole without mayonnaise?
- Sour cream – An essential ingredient in loaded baked potatoes.
- Green onions
- Smoked paprika – I love smoked paprika in this recipe. It’s mixed into the sauce to add even more smoky bacon taste.Â
- Garlic powder
- Black pepper
- Milk
- Cheddar cheese

Potato Bacon Casserole
Ingredients
- 3 pounds Yukon Gold potatoes If you're using the smaller potatoes, boil them whole. If you're using the larger potatoes, it's best to halve them to decrease the amount of time it will take to reach fork-tender consistency.
- 1 teaspoon salt Plus about another tablespoon to salt the water used to boil the potatoes.
- 12 ounces bacon
- 1 cup mayonnaise
- 1 cup sour cream
- ½ cup thinly sliced green onions Use the white portion of the green onions. Set aside a few pieces of the green section for an optional garnish.
- 1 teaspoon smoked paprika or regular paprika
- ½ teaspoon garlic powder
- ½ teaspoon black pepper
- ½ cup milk or plant-based milk
- 8 ounces shredded cheddar cheese 4 ounces mixed into the potato salad and 4 ounces sprinkled on top.
Instructions
- Preheat the oven to 375 degrees. Line a cookie sheet with parchment paper or foil.
- Scrub and Rinse the potatoes. Place them in a large pot and cover them in water and about a tablespoon of salt.
- Cover and bring to a boil. Reduce the heat to medium-low and simmer for about 10-15 minutes or until the potatoes are fork tender. The amount of time it takes to boil your potatoes will vary depending on the size of the potatoes.
- Once tender, remove the potatoes from the water and allow them to cool.
- While the potatoes cool, add the bacon to a baking sheet lined with parchment paper or foil and bake for about 15 minutes or until it’s crispy. Remove the bacon from the oven, turn the heat down to 350 degrees and crumble bacon into small pieces and allow it to cool on a paper towel to remove excess bacon grease.
- Add the mayonnaise, sour cream, green onion, smoked paprika, garlic powder, 1/2 teaspoon salt, black pepper, milk, 4 ounces of shredded cheddar, and the bacon crumbles (reserve about 2 tablespoons of crumbled bacon for the topping) to a large bowl and stir to combine.
- Chop the potatoes into 1/2-inch pieces or thin slices. Add the potatoes to the sauce and stir to combine.
- Pour the potato/sauce mixture into a 9×13 casserole dish. Sprinkle the top with the remaining 4 ounces of shredder cheddar and bake at 350 degrees for about 25-30 minutes or until the potato salad is warm and the cheese on top is thoroughly melted.
- Top with the remaining 2 tablespoons of bacon crumbles. Sprinkle about a tablespoon of finely chopped pieces of the green portion of the green onions on top (optional).


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